The PCB and the PSL franchises have reached an agreement on a new financial model for the league, ending a long-running standoff that has jeopardised the league’s existence. In the last month’s PSL governing council meeting, the PCB presented a final offer of a new model that included giving the six franchises a larger share of the central revenue pool, financial relief for the Covid-hit seasons, and fixing a USD dollar-Pakistan rupee exchange rate for all future payments.
The franchises have accepted the offer after a few talks among themselves.
Some important changes are :
Increased revenue from the central pool
From the seventh edition forward, all franchises will get 95% of revenue earned from all revenue streams, including television rights, sponsorship rights, and gate receipts. In light of the Covid-19 outbreak that postponed both seasons, the PCB will split 98 percent of the central pool revenue for PSL 5 and 6. In recent years, the revenue split has ranged from 85 to 90 percent.
From the day of signing, the dollar rate will be fixed
The exchange rate of the US dollar against the franchise fee has been a major cause of controversy. When franchises were auctioned, the price was fixed in US dollars. When the first five franchisees joined in 2015, the exchange rate was PKR 105 to a dollar. The pricing of a US dollar is now hovering around PKR 170. The PCB will peg the US dollar to the day the new deal is signed, according to the accepted offer. Players from other countries will continue to be compensated in US dollars.
Payments of franchise fees
The PCB has amended the franchise fee payment schedule in its new, final offer, eliminating the practise of paying player fees and then altering the amount when they pay out from the central pool money. The board is requesting that teams pay 50 percent of player costs in advance under this new paradigm.
There will be no new franchisees until the PSL 10 season
The PSL began in 2015 with five teams, and the sixth team, the Multan Sultans, was added in 2017. The PCB, however, cancelled the club’s eight-year ownership rights after the company failed to pay a USD 5.2 million annual charge. PCB reclaimed the ownership rights and resold them for USD 6.35 million to a new owner. However, no new franchises will be established until the PSL’s tenth season.